Mt. Juliet city officials said this past January was the highest sales tax month on record.
According to city records, collections jumped from $785,972 in Dec. 2015 to $1,166,945 in Jan. 2016. January 2012 saw $783,638 in sales tax collection, said City Manager Kenneth Martin.
"We are extremely blessed and thankful," Martin said. "We will continue to work hard daily to maintain and improve the quality of life in our great city for our great citizens and those who visit Mt. Juliet."
Martin explained a sales tax is a consumption tax imposed by the government on the sale of goods and services.
"While the tax is imposed on the business transaction, the law empowers the business to collect it from the buy," he said. "Failure to collect does not relieve the business from paying the tax. The business is a collection agent for the state receiving a percent or fee for the effort provided the tax is remitted timely."
Sales tax collections fund much of state government as well as city government and schools in cities like Mt. Juliet. Martin said Tennessee provides a "share" of sales tax revenue collected by the state to Mt. Juliet to assist in these services and it's based on population.
Additionally, counties and cities impose a "local options" sales tax up to 2.75 percent on all items taxed by the state. Wilson County's is 2.25 percent, said Martin.
"Local Option is the city of Mt. Juliet's primary source of revenue providing a little under 50 percent of total unrestricted revenue, meaning that revenue that can be spent as the city commissioners choose in providing police protection, parks and recreation, administration and ordinary operations of public works," Martin said.
The city manager said he attributes the record collection in January to the booming economy in Mt. Juliet and predicts more records broken in the future.
Writer Laurie Everett can be contacted at firstname.lastname@example.org.